2021 (3) TMI 119

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....ss of Printing & Manufacturing of Packaging Material. Assessee filed its return of income for A.Y. 2011-12 on 30.09.2011 declaring total income at Rs. 7,58,59,790/-. The case was selected for scrutiny and thereafter assessment was framed u/s 143(3) of the Act vide order dated 26.03.2014 and the total income was determined at Rs. 8,63,87,970/-. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who vide order dated 25.01.2016 in Appeal No. Del/CIT(A)-5/0135/2014-15 granted partial relief to the assessee. Aggrieved by the order of CIT(A), assessee is now before us and has raised the following grounds of appeals: "A. That on facts and circumstances of the case the Learned AO and learned CIT(Appeals) erred in :....

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....quipments Inc during the year and worked out the disallowance interest amounting to Rs. 10,21,266/-. 5. Aggrieved by the order of AO, assessee carried the matter before the CIT(A) who granted partial relief to the assessee by directing the AO to exclude the interest on Rs. 42.05 lakhs being the building loan received by the assessee on the last day of the accounting year. He accordingly directed the AO to rework the disallowance on the amount tabulated under para 8.2.3 of her order. Aggrieved by the order of CIT(A), assessee is now before us. 6. Before us, Learned AR reiterated the submissions made before the AO and CIT(A) and further submitted that term loan of Rs. 329 lakhs was towards the finance of machinery purchased from TMP Meurer....

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.... and thereby assessee has utilized interest bearing fund for the purpose of advance. Before us, it is the contention of the assessee that the term loan of Rs. 329 lakhs was disbursed to the assessee on 07.01.2011 which is after the date of advance payment aggregating to Rs. 1,23,19,500/- made to Vijuk Equipments Inc. The summarized amount advanced to Vijuk Equipments Inc. as recorded in the assessment order and also reproduced in the order of CIT(A) at Page 29 would reveal that assessee has made aggregating payment of Rs. 1,23,19,500/- on various dates prior to 7.1.2011, being the date of disbursement of term loan of Rs. 329 lakhs. We thus find force in the contention of the Ld AR that the term loan of Rs. 329 lakhs could not have been util....